Tamil Nadu’s Growth Highest In India At 11.19% | First Double-digit Growth In 14 Years, Here’s How

0:02 [Music] Tamil Nadu has surged ahead as India's fastest growing state economy recording an impressive 11.19% growth in the gross state domestic product or the GSDP for the financial the year 2024 2025 as per the data by ministry of statistics. This remarkable achievement not only outpaces the national average but also sets a new benchmark for state level economic performance across the country. The state's robust growth has sparked nationwide attention, raising the

0:48 question, how did Tamil Nadu manage to achieve such a dramatic economic upswing and reach its first doubledigit growth in 14 years? Compared to its neighboring states, MK Stalinled state has surged past Andhra Pradesh which recorded 8.21% growth, Telangana which saw just over 8% and Karnataka which registered a 7.37% growth. Tamil ladu has long been recognized as one of India's most industrialized and urbanized states with a diverse economic base spanning manufacturing services and agriculture. Historically the state has maintained steady growth. In 2010 2011 the state registered a 13.12%. Coincidentally on both occasions the DMK

1:34 was in power. This comes at a time when India's overall GDP growth is projected to hover around 7% making Tamil Nadu's performance even more striking. The state's economic strategy has focused on attracting investment, fostering innovation and ensuring inclusive development, but this year's numbers suggest a new level of success. Several key factors have contributed to Tamil Nadu's record-breaking growth. >> Tamil Nadu has always been a good performer. The state has consistently grown very well in terms of all identified parameters. What is of greater interest to you as you highlighted that this financial year for the year ended March 2025, Tamil Nadua recorded a growth of 11.2%.

2:19 This growth was largely possible because of excellent growth in the tertiary and the secondary sectors. If the state continues in this kind of a path, the state has a dream of becoming a 1 trillion economy by 203132. So this is very much on the cards. This higher growth will have a very good impact on significant fiscal metrics such as lower fiscal and revenue deficit and debt to GSTP ratio. If all the three major sectors of uh Tamil Nadu do consistently well by even half a percent more, we could see a growth rate of Tamil Nadu in excess of 12% in the next

3:05 year and going forward. Former director of Madras school of economics KR Shanmugum in an article in the times of India has also attributed the growth to the strong performance by the tertiary and the secondary sectors. So here are some major factors. Major global and domestic companies have expanded their operations in Tamil Nadu most notably Foxcon manufacturing Apple products. The expansion has been particularly recorded in automobile, electronics and the textile industries. In FI25 alone, Tamil Nadu attracted over $2.5 billion in new investments with major projects in electric vehicles, semiconductors and renewable energy. Manufacturing has shown growth rates of 12.6% 6% in 2023 24 and even higher at 14.7% in FY25.

3:52 Construction has also been a significant contributor growing at 15.9% and 11.6% during the same period. The factory strength stands at 40,000 ranking first in India with MSME hubs of over 25 lakh Udium registered MSMES ranking second in India. The service sector has been a major driver of growth as well. Chennai, the state capital, has solidified its reputation as a technology and financial hub with IT exports reaching new highs. The expansion of business process outsourcing, fintech and software services has created thousands of new jobs and contributed significantly to the state's GDP. The government's focus on digital infrastructure and skill development has enabled Tamil Nadu's workforce to meet the demands of a

4:37 rapidly evolving global economy. Agriculture, traditionally a cornerstone of Tamil Nadu's economy, has also played a role in this year's growth story. The sector registered modest growth of 3.2% in 202425, up from 1.2% last year. Despite challenges posed by erratic monsoons, the state implemented targeted irrigation projects and promoted high value crops resulting in increased agricultural output. Over the past year, Tamil Ladu has accelerated the construction of highways, ports and industrial corridors, reducing logistics costs and improving connectivity. The Chennai Bengaluru industrial corridor in particular has attracted new manufacturing units and facilitated smoother movement of goods. Investments in renewable energy infrastructure especially solar and wind power have not

5:23 only supported industrial growth but also positioned Tamil Nadu as a leader in sustainable development. The key industries in Tamil Nadu are automobiles, clothing, leather and leather products, textiles, computers, electronics and optical products, machinery and equipment. Whereas it exports and is a top exporter of engineering goods, electronics, garments, cotton yarn, hand loom products, leather products and other major exports including petroleum products, organic and inorganic chemicals. The state administration has prioritized ease of doing business as well, cutting red tape and ensuring transparent governance. MK Stalin posted on X about Tamil Nadu's staggering growth crediting the Dravidian model of growth setting a target of $1 trillion economy by 2030. >> See this is what towards this growth is

6:09 our prime chief minister is working for. He said that in a very short time it will exceed $5 trillion $1 trillion economy. He's working on it. He's bringing in many industries and our share in the nation's GDP stands first in terms in terms of money value and we are working for it. We are giving employment. It will create employment generation. It will create people other facilities also to the people and to the it contributes to the welfare of the nation also. It contributes to the economy development of the country also.

6:56 >> The impact of this growth is visible on the ground. Unemployment rates have declined, household incomes have risen and poverty levels have dropped. In summary, Tamil Ladu's 11.19% GDP growth in FY25 is the result of a well-coordinated strategy that leverages its strengths in manufacturing services and agriculture backed by proactive government policies and robust infrastructure development. For more news and updates, keep watching Life Mint. In a world where business never stops, Mint keeps you ahead any screen, anytime from studios to the ground. Mint is doing brilliantly well. It's a well read page. I would think Mint breaks down business, leadership, and lifestyle. Boldly, visually, and

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